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Ch.20

TermDefinition
Consumer Someone who buys a good or service.
Disposable Income Money income left after all taxes on it have been paid.
Discretionary Income Money income left after necessities have been bought and paid for.
Consumerism A movement to educate buyers about the purchases they make and to demand better and safer products from manufactures.
Comparison Shopping Buying strategy to get best buy for the money.
Warranty The promise made by a manufacturer or a seller to repair or replace a product within a certain time period if it is faulty.
Budget A plan for making and spending money.
Income Money received from labor, business, or property.
Expense Money spent on goods and services.
Credit Money borrowed to pay for a good or service.
Annual Percentage Rate Annual cost of credit expressed as a percentage of the amount borrowed.
Collateral Property or valuable item serving as security for a loan.
Bankruptcy Inability to pay debts.
Save To set aside income for a period of time so that it can be used later.
Interest The payment people receive when they lend money or allow someone else to use their money.
Principal The most important.
Return Profit earned through investing.
Stock Ownership share of a corporation.
Dividend Payment of a portion of a company's earnings.
Bond Contract to repay borrowed money with interest at a specific time in the future.
Mutual Fund Pools of money from many people who are invested in a section of individual stocks and bonds chosen by financial experts.
Evaluate To assess or find the value of.
Commit To pledge or assign oneself to a particular action.
Eliminate To get rid of.
Created by: daysha spruell